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Apple has come up with critical news that could affect iPhone prices and stocks. Allegedly, the company accelerated its plans to shift iPhone production from China to other countries. The tech giant, has set its sights on other Asian countries and wants to take production to India and Vietnam.

Apple tells suppliers to plan for shift of iPhone production out of China

China is Apple’s choice for production for many of its significant products, but over the years, it has reconsidered relying on the country so much. While it has long planned to start spreading its production into other territories, it seems that Apple is becoming more proactive about its intentions.

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According to The Wall Street Journal (WSJ) article, Apple wrote that its eyes are set on other Asian countries. Allegedly, the company wants to take production to India and Vietnam. The report stated that Apple executives have long known the risks of dumping production to China but have not made anything against it. It was noted that China provided Apple with an educated and hardworking workforce, political stability and a vast market for its products.

The plans mention reduced dependency on Foxconn Technology Group companies. Buffeted by lockdowns led by zero-COVID government policies, as well as riots that have occurred at Foxconn’s troubled Zhengzhou factory, the biggest maker of Pro-model iPhone, Apple has more of a need to migrate away. Analyst Daniel Ives said: “What happened at the Foxconn factory in China was the last straw for Apple.”

Analyst Ming-Chi Kuo said that Apple plans to manufacture 40-45% of iPhones in India, up from a current level in the single digits. Meanwhile, Vietnam is expected to take on more production of other product ranges, such as AirPods, Apple Watch, and MacBook models.

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